Papua New Guinea has five months remaining to fix its anti-money laundering and counter-terrorist financing (AML/CTF) systems or face the severe repercussions of being placed on the Financial Action Task Force’s (FATF) “grey list”.

The FATF has imposed an October 2025 deadline, and the government is scrambling to prove its commitment to global partners.

Speaking in Parliament, Prime Minister James Marape said Treasury Minister, Ian Ling-Stuckey had been given the responsibility to lead a taskforce to fix PNG’s issues associated with money laundering and terrorist financing.

“I summoned all agency heads to a critical meeting last week giving them clear direction, in no uncertain terms, that they work day and night to avert the possibility of us getting grey listed,” Marape said.

“This review comes around every five years.

“We have only three or four areas that are outstanding that we must dispatch forthwith.”

PNG is no stranger to the FATF grey list, having been placed under increased monitoring in 2014 before successfully being removed in 2016.

Deficiencies highlighted
However, a recent assessment by the Asia Pacific Group on Money Laundering (APG) highlighted ongoing deficiencies, particularly in the effectiveness of PNG’s AML/CTF regime.

While the country has made strides in establishing the necessary laws and regulations (technical compliance), the real challenge lies in PNG’s implementation and enforcement.

The core of the problem, according to analysts, is a lack of effective prosecution and punishment for money laundering and terrorism financing.

High-risk sectors such as corruption, fraud against government programmes, illegal logging, illicit fishing, and tax evasion, remain largely unchecked by successful legal actions.

Capacity gaps within key agencies like the Royal Papua New Guinea Constabulary and the Office of the Public Prosecutor have been cited as significant hurdles.

Recent drug hauls have also highlighted existing flaws in detection in the country’s financial systems.

The implications of greylisting are far-reaching and potentially devastating for a developing nation like PNG, which is heavily reliant on foreign investment and international financial flows.

Impact on economy
Deputy Opposition leader James Nomane warned in Parliament that greylisting “will severely affect the economy, investor confidence, and make things worse for Papua New Guinea with respect to inflationary pressures, the cost of imports, and a whole host of issues”.

If PNG is greylisted, the immediate economic fallout could be substantial. It would signal to global financial institutions that PNG carries a heightened risk for financial crimes, potentially leading to a sharp decline in foreign direct investment.

Critical resource projects, including Papua LNG, P’nyang LNG, Wafi-Golpu, and Frieda River Mines, could face delays or even be halted as investors become wary of the increased financial and reputational risks.

Beyond investment, the cost of doing business in PNG could also rise. International correspondent banks, vital conduits for cross-border transactions, may de-risk by cutting ties or scaling back operations with PNG financial institutions.

This “de-risking” could make it more expensive and complex for businesses and individuals alike to conduct international transactions, leading to higher fees and increased scrutiny.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

The Royal Papua New Guinea Constabulary “has a gap” in its accountability and governance in the organisation, warns Police Commissioner David Manning.

And the missing gap needs to be filled.

Manning said that during the launch of a workshop for Governance and Accountability when he reminded divisional commanders, directors, provincial police commanders, legal experts and stakeholders that more needed to be done to fulfil the expectation of government and the people in the country.

“As a discipline organisation, governance and accountability is a key ingredient to successful work and I urge all officers to share their experiences with stakeholders taking part in this workshop and learn from them on leadership and accountability,” Manning said.

He said the workshop was part of the Corporate Plan 2022-2030 for the constabulary.

Former Police Commissioner Ila Geno officially launched the workshop, saying accountability was “part and parcel of governance”.

“The governance speaks about controls or authority, the action or manner in system of government. We must be committed to better build the constabulary and it all starts from individuals and adding values to our work.”

Geno shared his experience as police commissioner during the 1988-98 Bougainville Crisis dealing with the people and the issues in efforts to maintain peace and order.

Marjorie Finkeo is a PNG Post-Courier reporter. Republished with permission.

Article by AsiaPacificReport.nz

Australia has gifted Papua New Guinea with 3000 ballistic vests and 3000 helmets which arrived at Jackson’s International Airport in Port Moresby today.

They were flown in on a Royal Australian Airforce C17 Globemaster inbound from the United States.

The ballistic vests and helmets are a gift from Australia to the Royal Papua New Guinea Constabulary (RPNGC) in response to Papua New Guinea’s request for additional protective equipment for the police force.

At a ceremony yesterday, Australian High Commissioner Jon Philp and Australian Federal Police Commander Jamie Strauss formally signed over the equipment to Police Commissioner David Manning.

“Australia is pleased to deliver these ballistic vests and helmets ahead of the 2022 National Elections. PNG and Australia share a tradition of representative democracy reflecting our broader shared values and Australia is proud to be able to support PNG through this gift and through our broader Supporting Elections Programme,” said High Commissioner Philp.

The protective equipment that Australia delivered today will allow the RPNGC to safely carry out their duties — not only during the national election, but in the critical operations the RPNGC undertake every day.

AFP Commander Jamie Strauss highlighted that “the provision of this equipment is a demonstration of the maturing cooperation between the RPNGC and the AFP under the PNG-Australia Policing Partnership”.

The partnership between Australia and PNG was strengthened by our close cooperation during the covid-19 response and Australia looks forward to further deepening the cooperation.

Papua New Guinea goes to the polls on July 2-22.

Gorethy Kenneth is a PNG Post-Courier reporter. Republished with permission.

Article by AsiaPacificReport.nz

Many allegations have been leveled against Papua New Guinea’s disciplinary forces over the years, alleging that police and soldiers sell firearms.

However, Papua New Guinea Defence Force (PNGDF) Commander Major-General Gilbert Toropo denies these claims, saying all firearms are inspected and are accounted for on a fortnightly basis.

He said that the military had a system in place to ensure accountability for weapons in the force.

With recent reports of the use of firearms in tribal fights across parts of the country, many have started to ask where they are getting the guns from.

General Toropo said such statements must be backed up with evidence.

“Today, people can get such military specification weapons anywhere through the borders,” he said.

“So these allegations have to be supported with evidence. It is unfair to make generalised statements which only undermine our efforts to make PNGDF a force that our people and governments can trust.

“It’s easy for people to make statements that only discredit the force [and] that are very hard to retract,” he said.

Attempts made to get comments from the Royal Papua New Guinea Constabulary (RPNGC) were unsuccessful.

Unwritten rule
Back at Independence in 1975, there were already a few guns in the community, but as the former Provincial Secretary of Chimbu, Barungke Kaman, said some 40 years ago, there was an unwritten rule that they would not be used in tribal fights, where participants would stick with traditional weapons.

When asked about the consequences of those unwritten rules being dropped, Kaman responded at that time that “there would then be mayhem”.

Well those rules have long since been dropped, said Institute of National Affairs (INA) executive director Paul Barker.

Barker said tribal leaders today were hiring gunmen — or hitmen — often from outside their own clans, to target opponents, and the other side responded in the same way.

“We had the gun summit and task force, led by former commander Jerry Singirok and respected senior police officers, like John Toguata, but little action has ever been taken by government to follow up,” he said.

“This is partly because those that are involved in the gun trafficking and arming of groups, sometimes called warlords, are often closely linked to politics and politicians, helping deliver support and countering opponents, or law enforcement officials.”

According to the United Nations Trust Facility Supporting Cooperation on Arms Regulation (UNSCAR) that backs action on guns regulation, Papua New Guinea has about 51,957 illegal and unlicensed firearms.

Tougher PNG gun laws
In 2018, to address the widespread use of firearms in crimes and in tribal fights, Parliament passed tougher gun laws that included penalties of up to K10,000 (NZ$4000) or five years’ jail for the use of unlicensed firearms or the misuse of licensed weapons, with the manufacturing of guns now attracting up to 10 years’ jail time.

But Barker said users and manufacturers of guns seemed to consider themselves astonishingly immune from arrest and prosecution by law enforcement.

Some operating within PNG’s cities have even been ready to be interviewed by international film crews and barely conceal their identities or whereabouts or activities, as though they consider themselves protected from police action.

Rebecca Kuku is a senior PNG Post-Courier journalist. She also reports for The Guardian’s Pacific Project.

Article by AsiaPacificReport.nz